Household financial stability - Publications
The Federal Reserve Board has released its sixth annual Report on the Economic Well-Being of U.S. Households. Based on the Board's annual Survey of Household Economics and Decisionmaking conducted in October and November of 2018, the report provides insights on individuals’ income, employment, dealing with expenses, bank and credit access, housing decisions, education, student loans, and retirement. A new topic in this year’s report—aimed at understanding the experiences of bank customers—is the ability of adults to access funds in their bank accounts.
By providing their workers with access to affordable, low-risk credit, companies could help ease personal financial stresses—and improve their own bottom lines. Read more in this June 2018 article from Community Dividend, an online publication of the Minneapolis Fed.
Demographics of Wealth 2018 Series — Essay No. 2: A Lost Generation? Long-Lasting Wealth Impacts of the Great Recession on Young Families
This second essay in the Center for Household Financial Stability’s 2018 “Demographics of Wealth” series explores the connections between a person’s birth year and measures of their family’s financial well-being, including income and wealth. The essay is based on an analysis of over a quarter-century’s worth of data collected by the Federal Reserve through its Survey of Consumer Finances.
Demographics of Wealth 2018 Series — Essay No. 1: The Financial Returns from College across Generations: Large but Unequal
This first essay in the Center for Household Financial Stability’s 2018 “Demographics of Wealth” series explores the connections between a person’s level of completed education and measures of their family’s financial well-being, including income and wealth. The essay is based on an analysis of over a quarter-century’s worth of data collected by the Federal Reserve through its Survey of Consumer Finances.
Bridges is a quarterly review of regional community and economic development issues, projects, and regulatory changes for practitioners from community-based organizations, as well as for CRA officers, academics, and government officials that work in the Eighth Federal Reserve District. Feature articles in the Winter 2017-2018 issue include: New St. Louis Fed Tool Dives Deep into Community Investment; Cash on Hand Is Critical for Avoiding Hardship; Connecting a Memphis Community to the Built Environment through Equity; Investment Connection: The St. Louis Fed’s New Approach to CRA; CRA: An Examiner’s Perspective – Questions to Ask Workforce Development Partners; and more.
This issue of the Community Pulse presents the findings from our 2017 survey. Amount of/and or access to affordable housing, skill level of local labor force and general poverty were the top three current issues in the fifth district.
In this issue of 5th District Footprint, the Richmond Fed examines the change in the percentage of mortgage denials based on the applicant’s debt-to-income ratio from 2013 to 2014 and from 2014 to 2015.
How have patterns of concentrated poverty changed in the Southeast since the Great Recession? This article previews an Atlanta Fed paper that explores this question.
In September 2015, news headlines touted a large jump in U.S. household incomes. How did states and communities across the Southeast fare? Did they keep up with the national trend? This article uses recent U.S. Census Bureau data to provide a snapshot of the economic well-being of states across the Southeast
This article uses data from the Federal Reserve Board of Governors' 2015 Survey of Household Economics and Decisionmaking, or SHED, to examine the financial well-being of households across the Southeast in the aftermath of the Great Recession.
Data show a persistent widening of income inequality in this country. How can communities establish economic growth that is both strong and inclusive? This article looks at a South Florida effort to improve prosperity for all and create a more resilient local economy.
Quality housing is increasingly out of reach for low- and moderate-income households in the United States. For policymakers and researchers, the issue can often be seen as an abstraction, with discussion centering on housing prices, average ratios of rent-to-income, and "demographic change." This article highlights an Atlanta Fed event that highlighted some of the human stories hidden in the numbers.
Heirs' properties are parcels of land inherited by descendants of a previous owner who did not leave a will. This type of ownership is widespread in the Southeast and disproportionately found in low-income ethnic and racial minority families. This article examines the social and economic issues associated with these properties.
This article analyzes real estate transaction data to understand trends in multifamily informal mortgages and the market conditions in which they are likely to occur.
Infographics and data visualization tools are increasingly available from many sources, such as an interactive map accompanying a news article or a graph of expenditures analyzing an online credit card statement. These types of tools enrich our understanding of concepts and trends. This article examines two tools that aim to capture the real variation between housing and transportation costs between and within regions, and therefore the relative affordability for households of varying income levels.
Invested is the Boston Fed's new interview-based community development magazine that presents the voices of those who are affecting or affected by low- and moderate-income issues in New England. Each four-issue series explores a different topic. Series One explores "Many Roads to Quality Work," and in our first issue of Invested, we consider the complex and crucial challenge of creating work schedules that meet a variety of needs, and learn why strategic scheduling is such an important element of quality jobs and successful businesses.
Since the Great Recession, homeownership rates have dropped and the wealth divide has widened for low-income and racial and ethnic minority households. Homeownership is a significant contributor to household balance sheets and generator of household wealth, particularly for these populations. A contract for deed is a seller-financed real estate contract consisting of installment payments. For households that desire the financial and physical security of owning a home, contracts for deed may provide an inexpensive option. However, risks may exist. This discussion paper explores informal homeownership issues by tracking contract for deed sales in the Southeast.
In the July 2017 edition of Housing Market Perspectives, St. Louis Fed economist Bill Emmons considers homeowner's equity, or HOE, as the single largest component of wealth for black and Latino families, accounting for nearly half of those families' wealth as opposed to roughly a third for Asian and other families and about a quarter for white families.
Bridges is a quarterly review of regional community and economic development issues, projects and regulatory changes for practitioners from community-based organizations, as well as for CRA officers, academics and government officials that work in the Eighth Federal Reserve District. Feature articles in the Spring 2017 issue include: Memphis and Beyond: Assessing the Market for CRA Investment; Does College Level the Playing Field?; Back to the Future: Financial Capability in Social Work Practice; CRA: An Examiner’s Perspective – Train for Results!; Entrepreneurship and Re-entry: Aspire Entrepreneurship Initiative; and more.
In this fourth issue of the Quarterly Debt Monitor, covering the fourth quarter of 2016, the St. Louis Fed explores decreasing auto debt growth alongside a rise in subprime delinquencies on car loans. Over the past few years, strong lending of auto and student debt has buoyed total debt, accounting for the majority of credit expansion. This report offers a closer look at auto lending, including the factors that contributed to the expansion in this sector.
Read about C&B's transformation this fall into our new online magazine, Invested. Our spring 2017 feature article shares valuable lessons from the Boston Fed's Working Cities Challenge, an ongoing initiative to help smaller industrial cities in New England tackle social and economic problems. Also in this issue, we learn about the perils and abuses of land installment contracts, the value of community benefits agreements, and how entrepreneurship breeds opportunity in minority communities. Other articles highlight the importance of anchor institutions to local businesses, how "gamified" financial education seems to reinforce smart savings decisions, and we see evidence that pay-for-success approaches to preventing formerly incarcerated youth from reoffending can turn young lives around. Finally, we examine recent changes in the prospects for renters in New England.
In 2016, the Federal Reserve Bank of San Francisco held a series of roundtable discussions across the Western states to examine drivers of the recent rise in involuntary part-time employment and the impact it has on lower-income households. This paper summarizes existing research on the topic of underemployment, discusses themes that surfaced during the locally focused meetings, and proposes ways to address the underlying causes through solutions that build on the interrelated nature of housing, jobs, transportation, and child care.
In this issue of In the Balance, economists from the Federal Reserve Bank of St. Louis further explore the paradox of how higher education has become an unintentional engine of economic disparity for blacks and Hispanics, rather than an engine of economic equality.
Bridges is a quarterly review of regional community and economic development issues, projects and regulatory changes for practitioners from community-based organizations, as well as for CRA officers, academics and government officials that work in the Eighth Federal Reserve District. Feature articles in the Winter 2016-2017 issue include: Indianola Promise Community: Improving Academic Outcomes in the Delta; Working Together to Address the Wealth Gap; Community and Economic Development: Around the Globe and Back to the Mississippi Delta Region; 12 Steps to Financial Success: Empowering At-Risk Adults; Memorial Community Development Corporation: Putting Faith to Work; and more.
In this third issue of the Quarterly Debt Monitor, which focuses on the third quarter of 2016, the St. Louis Fed finds consumer debt growth stalling in the four largest metropolitan statistical areas (MSAs) in the St. Louis Fed's District (St. Louis, Little Rock, Ark., Louisville, Ky, and Memphis, Tenn.) and across the United States. Additionally, a special section is included in the issue that focuses on consumer debt trends in some of the smaller MSAs in the District, including Evansville, Ind.-Ky.; Fayettevillle-Springdale-Rogers, Ark.-Mo.; Jackson, Tenn.; and Springfield, Mo.
According to the 2016 Illinois Poverty Report, poverty rates are two to three times higher for Illinoisans of color. Black children in Illinois are nearly four times more likely to live below the poverty line than white children. In this 2016 article from the Chicago Fed's Profitwise News and Views, the author examines how a universal Children’s Savings Account (CSA) program has the potential to provide such a ladder out of poverty and toward long-term financial security–especially in communities of color.
In this second issue of the Quarterly Debt Monitor, covering the second quarter of 2016, the St. Louis Fed gives a detailed report on consumer debt nationally compared with the four largest metropolitan statistical areas (MSAs) in the St. Louis Fed's District (St. Louis, Little Rock, Ark., Louisville, Ky., and Memphis, Tenn.) and finds consumer debt grew across the United States, as well as all of the MSAs in the Eighth Federal Reserve District.
In this inaugural edition covering the first quarter of 2016, the St. Louis Fed reports on consumer debt nationally compared with the four largest metropolitan statistical areas (MSAs) in the Eighth Federal Reserve District. These quarterly reports will examine changes in total consumer debt and in specific types of liabilities: mortgages, home equity lines of credit (HELOC), automobile and student loans, and credit card balances.
Campaign organizers aim to saturate the Blackfeet reservation with messages about the opportunities and pitfalls that large legal payouts present. From Community Dividend, a publication of the Minneapolis Fed.
This 2016 article, from the Chicago Fed's ProfitWise News and Views, provides an in-depth look at The Center for Economic Progress (CEP), a local and national leader in providing free tax and financial services for low-income families, with a front-line presence in 15 Chicago area communities, and central Illinois. CEP’s mission comes to life through its three core service areas: tax preparation, tax legal clinic and asset building program.
While the preventive effect of loan modifications on mortgage default has been well-documented, evidence on the broad consequences of modifications has been fairly limited. Based on two unique loan-level data sets with borrower credit profiles, the study Borrower Credit Access and Credit Performance After Loan Modifications reports novel empirical evidence on how homeowners manage their credit before and after receiving modifications.
Consumer debt grew rapidly in the years leading up to the Great Recession and contracted sharply in its immediate aftermath.This credit cycle played out unevenly among households with different financial means and in different parts of the country. While much attention has been paid to mortgages, other debt categories, such as automobile and student, play an important role in household finances. In this 2006 article, featured in ProfitWise News and Views, the Chicago Fed analyzes changes in the pattern of consumer credit during the period of the Great Recession by income group and loan category in Cook County overall, and compared to the nation.
This article from a 2016 Federal Reserve Bank of Chicago’s Profitwise News and Views publication provides an in depth look at the Cara Program. Since 1991, Cara has helped men and women affected by poverty to get and keep good jobs, and more importantly rebuild hope, self-esteem, and opportunity for themselves and their families in the process. Cara produces hundreds of jobs each year, at retention rates over 20 percentage points higher than national averages, and with over 80 percent of employed participants moving onto permanent housing in which their families can thrive.
This publication includes papers originally presented at the ninth biennial Federal Reserve System’s Community Development Research Conference. The authors of the essays in this volume explore a range of issues and concepts central to understanding how—and how well—people are able to move economically.
This article, featured in ProfitWise News and Views from the Chicago Fed, summarizes a 2015 conference co-hosted by the Federal Reserve Bank of Chicago at the University of Wisconsin–Platteville on building healthy and sustainable rural communities. The event provided an opportunity to explore what is working to build health, prosperity, and resilience in rural communities.
The fall 2016 issue leads off with the necessity of teachers of color in public school systems and also reports on local educators' reactions to Common Core implementation. Other topics include the high prevalence of young adults receiving Social Security Disability benefits in northern New England, an overview of the region's addiction epidemic, a look at unemployment and the popularity of lotteries in Maine, and the relationship between homelessness and subsidized housing. More articles cover the Capital & Collaboration initiative's examination of community investment in Massachusetts Working Cities, how mobile payments help streamline commuting, a collaboration between Starbucks and a nonprofit group of CDFIs to create jobs, and data on childhood food insecurity in New England.
This Dallas Fed article provides an overview of the latest in Texas' payday lending field, highlighting impact on low-income communities, recent changes to local ordinances, the CFPB's proposed federal regulations and low-cost alternatives in the state and across the U.S.
Bridges is a quarterly review of regional community and economic development issues, projects and regulatory changes for practitioners from community-based organizations, as well as for CRA officers, academics and government officials that work in the Eighth Federal Reserve District. Feature articles in the Summer 2016 issue include: All Low- and Moderate-Income Areas Are Not Created Equal; Moving First-Time Buyers Off the Fence: Solving the Millennial Homebuyer Puzzle with Proven Online Solutions and Partnerships; Innovative Partnership Brings Hope to Small Towns; Entrepreneurship and Economic Development Fueled by Students and Faculty; Impacting Homelessness in Missouri; and more.
In this issue of 5th District Footprint, the Richmond Fed examines the share of people living in a county’s low- and moderate-income (LMI) areas. In the Fifth Federal Reserve District, the average county’s percentage of population living in LMI areas was 23 percent with a median of 18 percent. Financial institutions and regulators use the income level indicator to determine whether banking activity is taking place in targeted areas.
Bridges is a quarterly review of regional community and economic development issues, projects and regulatory changes for practitioners from community-based organizations, as well as for CRA officers, academics and government officials that work in the Eighth Federal Reserve District. Feature articles in the Spring 2016 issue include: Arkansas Communities Focus on Action, Reap Results; What Happens When the Least of These Gives the Most?; From Restaurant to Kitchen Incubator: Chef Space; Bioscience as a Foundation for Transforming St. Louis; The Information You Need for the Impact You Want: Two New Websites Link Data with Donor Action; and more.
In the summer 2016 issue of the Boston Fed's Communities & Banking magazine, the feature story reveals how shorter life expectancy of poorer people means that federal benefits for the elderly disproportionately help the well-off. Other articles look at expulsion of children from early education settings, using mobile technology to boost children’s savings accounts, innovative high school internships, Connecticut programs that help youth and older workers pursue higher education and better jobs, and more.
The Low- and Moderate-income Conditions Survey:A Summary of Seventh Fed District Community Development Practitioner Responses
Increased employment hasn’t translated into greater financial well-being, according to findings from the LMI ((low- and moderate-income) survey published by the Chicago Fed’s Community Development and Policy Studies (CDPS) Division. While surprising on its face, Seventh District respondents offer three broad reasons for this seeming contradiction.
Given changing regulatory and market factors in mortgage finance, the time is ripe for innovation, and it behooves policymakers, business leaders, and communities to consider potential alternatives to traditional mortgages. In this 2016 ProfitWise New and Views article, the Chicago Fed’s Community Development and Policy Studies (CDPS) Division explores five innovative products in the residential mortgage marketplace – some already in place, others in progress.
The spring 2016 issue of the Boston Fed's Communities & Banking publication spotlights shocking racial wealth gaps in the Boston metropolitan area. Also, see our map on changes in home mortgage originations in New England.
A Q&A with a Cleveland Fed economist explores that as a poverty-reduction tool, raising the minimum wage isn't without drawbacks.
In this Forefront article, two Cleveland Fed researchers look at whether the increase in student loan debt could be responsible for the decline in mortgage borrowing among those between the ages of 18 and 30.
Bridges is a quarterly review of regional community and economic development issues, projects and regulatory changes for practitioners from community-based organizations, as well as for CRA officers, academics and government officials that work in the Eighth Federal Reserve District. Feature articles in the Winter 2015-2016 issue include: Thrivers and Strugglers: A Growing Economic Divide; Neighborhood “House Economy” Teaches Youth Life Lessons; Grassroots Neighborhood Revitalization in Hyde Park; Collaboration: The Key to Champion Community Investments’ Success; How Housing and Health Care Nonprofits Can Increase Access to Medical Residential Services; Jacobsville Join In!; and more.
Financial Well-being: At the Convergence of People and Place – Reflections from a Chicago Conversation
Check out this brief collection of writings, based on a Chicago Fed convening and local conversation about financial well-being. This gathering was motivated by What It’s Worth, a joint publication of the Corporation for Enterprise Development (CFED) and the Federal Reserve Bank of San Francisco, collecting insights from thought leaders across the country on the topic of financial capacity for families and communities.
The St. Louis Fed’s annual Community Development Outlook Survey gathers input from a variety of stakeholders regarding the economic conditions of low- and moderate-income (LMI) households and communities in the seven states that make up the Fed’s Eighth District. Data from the survey is used to inform strategic planning, community and economic development, and public policy dialogue around issues and challenges for the District’s LMI areas.
The American economy is only as strong as the American household. In communities across the country, families are struggling to thrive. Learn what we can collectively do to tackle poverty and put more families on the path to financial well-being. A new book published by the San Francisco Fed in partnership with CFED, What It’s Worth: Strengthening the Financial Future of Families, Communities and the Nation, provides a 360-degree view of the financial problems and challenges millions of American households face. The book highlights the enormous creativity and innovation underway to improve financial well-being and provides concrete ways that nearly all sectors of society can implement proven and evolving solutions.
This summary of the report Gentrification and Residential Mobility in Philadelphia provides applied findings appropriate for a community development practitioner audience on gentrification and neighborhood change in Philadelphia.
New research from the Philadelphia Fed, Gentrification and Residential Mobility in Philadelphia, explores the topic of gentrification and the effects of neighborhood change on vulnerable residents. This discussion paper provides an in-depth analysis on which neighborhoods in Philadelphia are gentrifying, who is moving into and out of gentrifying neighborhoods, and the experiences of vulnerable residents in those neighborhoods.
Bridges, a quarterly review of regional community and economic development issues, projects, and regulatory changes, is for practitioners from community-based organizations, CRA officers, academics, and government officials working in the Eighth Federal Reserve District. Feature articles in the Summer 2015 issue include: Innovative Credit Union Association Expands Access to Capital; Better Homes, Better Loans: Better Business; Binghampton Development Corporation: Building Assets and Communities; The Hager Educational Foundation: Empowering Citizens To Make Better Communities; and more.
The only magazine covering lower-income issues in the six New England states, Communities & Banking, produced by the Federal Reserve Bank of Boston, is a reader-friendly forum for research and best practices. Cover story: How equal pay for women would decrease US poverty.
The second student loan article in the Dallas Fed's Texas Consumer Credit Series explores possible factors influencing Texas student loan trends, higher education financing tools and circumstances that contribute to loan delinquencies. It shows that despite growing concerns, student loans are critical in bringing higher education–and a brighter financial future–within reach for many.
For commuters in rural areas with few transportation options, car ownership can be a key to self-sufficiency. From the July 2015 issue of Community Dividend, a publication of the Minneapolis Fed.
This third essay in the Center for Household Financial Stability’s “Demographics of Wealth” series from the St. Louis Fed examines the connections between age and wealth. The essay is the result of an analysis of data collected from more than 40,000 heads of households between 1989 and 2013 through the Federal Reserve’s Survey of Consumer Finances.
This July 2015 newsletter from the Kansas City Fed announces an upcoming book on workforce development, examines a cluster-based model to supporting inner-city entrepreneurship in Omaha and provides updates on a borrowing guide for Native American communities. The newsletter also contains an interview with a Kansas City Fed economist on the role of millennials and boomers in the recovery of the multifamily construction market, as well as other news and events.
This quarterly magazine from the Boston Fed supports the economic strength of lower-income communities by sharing relevant research and best practices. The summer 2015 issue cover article introduces the concept of child-impact statements.
Bridges is a quarterly review of regional community and economic development issues, projects and regulatory changes for practitioners from community-based organizations, as well as for CRA officers, academics and government officials that work in the Eighth Federal Reserve District. Feature articles in the Spring 2015 issue include: Community Counts: Activating All Families To Save for Higher Education; Preparing and Promoting Communities through Economic Analysis; Designing Opportunity: Ending Generational Poverty and Re-establishing Economic Stability in Rural America; Building Creative Communities; and more.
This second essay in the Center for Household Financial Stability’s “Demographics of Wealth” series examines the strong correlation between education and money. The essay is the result of an analysis of data collected from more than 40,000 heads of households between 1989 and 2013 through the Federal Reserve’s Survey of Consumer Finances.
This bimonthly newsletter from the Kansas City Fed provides information on community and economic development trends across the Tenth Federal Reserve District.
The St. Louis Fed’s annual Community Development Outlook Survey gathers input from a variety of stakeholders regarding the economic conditions of low- and moderate-income (LMI) households and communities in the seven states that make up the Fed’s Eighth District. Data from the survey is used to inform strategic planning, community and economic development, and public policy dialogue around issues and challenges for the District’s LMI areas.
Financial Resources in Kinship and Social Networks: Flow and Relationship to Household Wealth by Race and Ethnicity among Boston Residents
This discussion paper from the Boston Fed examines the extent to which family financial transfers occur among Boston residents of color. Targeting US-born blacks, Caribbean blacks, Cape Verdeans, Puerto Ricans, and Dominicans, findings show that households of color consistently receive fewer financial transfers than whites, while at the same time providing more financial assistance to their families and relatives. Particularly striking are differences in parental payments toward higher education expenses and financial support for the down payment of a home.
Looking for refi-eligible homeowners who have high-interest loans: Who's leaving money on the table?
An analysis by the Minneapolis Fed identifies pockets of the Ninth Federal Reserve District where a relatively high percentage of homeowners may be missing out on a chance to refinance their mortgages. From the April 2015 issue of Community Dividend, a publication of the Minneapolis Fed.
How important is it for community college students to be financially capable? Consider that community colleges enroll nearly half of all U.S. undergraduates, many of whom are from disadvantaged backgrounds, and that financial challenges often disrupt their educational progress and impede prospects for future financial wellness. As part of its efforts to help promote the financial stability of New England’s low- and moderate-income (LMI) residents, the Boston Fed is working with regional community colleges to help students manage their financial lives effectively. In its new handbook, Promoting Pathways to Financial Stability, the Boston Fed describes the importance of this work and shares related experiences of institutions in different parts of the country. The handbook is a resource for community college personnel, potential partners, and supporters with an interest in building the capacity of students to navigate financial challenges and plan for their future.
One model of financial counseling couples education with delivery of point-in-time municipal services. This model and other issues relevant to financial education providers were topics at the Cities for Financial Empowerment Fund's 2015 annual meeting, hosted by the Atlanta Fed's Nashville Branch. This Partners Update article by the Atlanta Fed's Emily Mitchell summarizes highlights from the meeting.
This first essay in the Center for Household Financial Stability’s “Demographics of Wealth” series examines the connection between race or ethnicity and wealth accumulation over the past quarter-century. The essay is the result of an analysis of data collected from more than 40,000 heads of households between 1989 and 2013 through the Federal Reserve’s Survey of Consumer Finances.
This first edition of Research in Brief examines the ways in which the type of bankruptcy filing — Chapter 7 or Chapter 13 — can have an impact on a household's future access to credit. Summarizing a working paper by Julapa Jagtiani and Wenli Li from the Federal Reserve Bank of Philadelphia, this brief provides insight into the outcomes of bankruptcy filings, including the implications for future access to unsecured debt and the impact of bankruptcy on future credit limits.
Increased demand and complexities could create a particularly challenging tax-filing season for Volunteer Income Tax Assistance providers this year. From the January 2015 issue of Community Dividend, a publication of the Minneapolis Fed.
U.S. job growth in 2014 was the best in 15 years, but not all those jobs pay enough to support a family. The ALICE project describes the population of workers struggling to afford basic necessities; this Partners Update article from the Atlanta Fed examines the Florida project results.
This paper from the San Francisco Fed explores age-friendly banking products and services that better protect and preserve the assets of an aging population. In order to examine the unique financial needs and increase the financial well-being of low-income older adults, the California Coalition for Rural Housing (CCRH) partnered with the National Community Reinvestment Coalition (NCRC) to conduct an intensive study of over 400 low-income tenants living in subsidized senior housing. CCRH and NCRC propose a number of recommendations that financial institutions can incorporate into the development of effective Age-Friendly Banking initiatives.
This Dallas Fed article describes the new UpSkill Houston initiative from the Greater Houston Partnership. UpSkill seeks to help close the skills gap and fill middle-skill jobs in the booming regional economy by connecting leaders from industry, education and social service organizations.
The first student loan article in the Dallas Fed's Texas Consumer Credit Series examines patterns and trends in student loan borrowing and its impacts. Part 1 shows that Texas' average student loan balance is lower than the national average, while delinquency rates are higher.
In this December 2014 installment of Liberty Street Economics, economists from the Federal Reserve Bank of New York share their analyses and insights on consumer credit conditions.
Bridges is a quarterly review of regional community and economic development issues, projects and regulatory changes for practitioners from community-based organizations, as well as for CRA officers, academics and government officials that work in the Eighth Federal Reserve District. Feature articles in the Summer 2014 issue include: Treasury’s myRA To Debut in Late 2014; RISE to the Challenge: Immigrant Entrepreneurship in Louisville; Creating Opportunity Pathways for Asset Development; Redefining Historic Preservation; and more.
Analyzing Home Mortgage Disclosure Act (HMDA) data, researchers at the Boston Fed provide a brief overview of New England's mortgage lending activity in 2012 and evidence of disparities in loan origination outcomes for borrowers of various incomes, races, and ethnicities in this Community Development Issue Brief from November 2014.
Disagreement over the nature of poverty and debate over how to address it are part of a long-running narrative in our nation. In a new essay published in Ledger, the Boston Fed's economic education journal, writer Bob Jabaily looks at three aspects of this narrative: the recurrence of certain themes in America's response to poverty, the ongoing discussion over how to define and measure poverty, and some of the more notable efforts to document the lives of poor people and raise awareness of poverty.
News reports have suggested that higher-risk lending is on the rise, but an analysis by the Minneapolis Fed paints a more nuanced picture. From the October 2014 issue of Community Dividend, a publication of the Minneapolis Fed.
This Dallas Fed 2014 research update presents maps and charts of consumer loan balances and delinquencies in the Eleventh District. The report indicates that aggregate consumer debt increased 7.6% from 2013, yet consumer loan performance in the district was still improved.
This issue of Community Investments from the San Francisco Fed focuses on the efforts that help households build on their earnings and invest in their future. Highlighted here are programs and policies that expand consumer access to more affordable financial products; support renters in building their credit history; and provide assistance to families investing in their futures through children’s savings accounts, entrepreneurship, and retirement.
In the Report on the Economic Well-Being of U.S. Households, the Federal Reserve Board provides a snapshot of the self-perceived financial and economic well-being of U.S. households and the issues they face, based on responses to the Board's 2013 Survey of Household Economics and Decisionmaking. The report provides insight into numerous topics of current relevance to household finances, including: housing and living arrangements; credit access and behavior; education and student loan debt; savings; retirement; and health expenses.
Buying a home is exhausting enough; does it help to add hours of financial counseling to the process? In a longitudinal study by the Philadelphia Fed, researchers evaluate the effectiveness of pre-purchase homeownership and financial management skills counseling. The study improves on previous efforts by employing an experimental design methodology, and it tracks study participants’ creditworthiness over time. Two key findings: pre-purchase homeownership counseling improves financial capability, and more hours of counseling produce greater outcomes for participants.
While appraisers have often been criticized for the inflated home values that were more prevalent during the housing boom, little research has been done to help understand how appraisal valuations respond to rapidly changing local market conditions and regulatory environments. In this discussion paper by the Philadelphia Fed’s Community Development Studies & Education department, researchers examine the pattern of appraisal bias in the Third Federal Reserve District during the housing crisis. Based on a unique transaction-level appraisal data set, this study evaluates how the lack of market activity, the concentration of foreclosures, and the increased use of appraisal management companies, as well as other factors, impact the incidence of low appraisals during the crisis.
This edition of the Philadelphia Fed's Cascade provides highlights from the 2014 Reinventing Older Communities: Bridging Growth & Opportunity conference. The major themes of intergenerational mobility and equitable growth and subthemes of education, employment, and revitalization appear throughout the issue. Articles focus on measuring intergenerational mobility and economic growth in the Third Federal Reserve District; reversing the cycle of poverty through education and mentoring, as well as workforce development; exploring the future of community development corporations (CDC) and measuring CDC impact; and more.
The Kansas City Fed provides financial forms, checklists and other resources to help consumers and small business owners prepare before and recover after disaster strikes. These resources were developed from a series of focus groups and meetings held in the tenth district.
Ever wonder about the Federal Reserve’s involvement in the field of community development? Wonder no more. Released in June 2014, Federal Reserve Community Development Perspectives: A summary of activities, insights, and future opportunities answers the "what," "why" and "how" of the Fed's role in community development. The report highlights the Fed’s recent efforts to address barriers to economic growth, and promote fair and informed access to financial markets. Featuring brief summaries of its community development work organized into four focus areas--people, place, the policy and practice of community development, and small business--the report includes background information that helps to provide context for this work, a sampling of key research, outreach programs and other initiatives, as well as some ideas on future challenges, needs and opportunities.
With the price of a college degree rising, students and families are taking on more debt. Is it paying off? Two Cleveland Fed researchers look at trends in student loan debt for young households and find that, by going to college, one is likely to end up in a household that earns a considerable wage income premium throughout its working life but which also has a sizeable amount of college debt early on. There is one education group for which this does not hold: those with some college but no degree. These households, which on average make up 32 percent of those 22 to 29 years of age and 25 percent of those 30 to 65 years of age, have some college debt but get little to no labor market benefit.
Bridges is a quarterly review of regional community and economic development issues, projects and regulatory changes for practitioners from community-based organizations, as well as for CRA officers, academics and government officials that work in the Eighth Federal Reserve District. Feature articles in the Spring 2014 issue include: Local Innovation, National Impact: Engaging Municipal Government in Financial Empowerment; Enrollment, Student Debt and LMI Communities; We’ve Met the Solution, and It Is Us; West Tennessee Day Trippin’: Rural Tourism Campaign Builds Regional Partnerships for Community and Economic Development; From the Ozarks to the Delta: A Historical Perspective of Regional Poverty in Arkansas; and more.
The Dallas Fed summarizes findings from a research study conducted in a South Dallas neighborhood which tests how gateways (basic bank products) and stepping stones (asset building financial products) can put households on a path to financial security.
Older adults face unique situations in the post-financial crisis economy. How are they managing financial transactions with new and emerging technologies? How well are they navigating an increasingly complex financial marketplace? The Federal Reserve Board of Governors convened several events and published a forum briefing paper on this topic.
The state of the student loan market has received much attention in recent years, as the number of borrowers and their collective debt have risen dramatically. These trends have been particularly problematic in the wake of the 2007–09 recession because increased unemployment and suppressed income impair borrowers’ ability to make payments on their loans. This Cascade Focus, published by the Philadelphia Fed, outlines the recent history of student borrowing in the Third Federal Reserve District and explores lending patterns, by the neighborhood income of the borrower, to better understand the implications for low- and moderate-income communities.
This edition of the Philadelphia Fed's Cascade focuses on ways to strengthen household financial stability after the recession, why the unbanked use alternative financial services, the use of tax-time savings programs to build assets, the Cities for Financial Empowerment Coalition, and student loan debt. It also includes an interview with Sandra Braunstein of the Federal Reserve Board of Governors on the Federal Reserve’s role in community development, a Mapping Our Community feature on the distribution of household income, and a memorial to Frederick Heldring, former Philadelphia bank CEO and a founder of the Delaware Valley Mortgage Plan.
Postsecondary educational expenses and student loan balances have been trending steadily upward, but persistent unemployment and weak economic conditions have created an alarming new trend of rising student loan defaults. This research brief from the San Francisco Fed examines broad trends in student borrowing in the Federal Reserve’s 12th District, with an emphasis on students from low- and moderate-income households.
Within the Federal Reserve’s 12th District, over 4 million families and individuals received the Earned Income Tax Credit (EITC) for tax year 2007, totaling over $8 billion in credits. In this research brief, the San Francisco Fed examines trends in EITC usage across the 12th District and looks at how the EITC and tax time provide a unique opportunity to link lower-income households to financial services and promote asset building.
Launched in 2011 by the San Francisco Fed, this project collects input from community stakeholders about the issues and trends facing low- and moderate-income communities in the 12th District. Reports synthesize key themes that emerge from the surveys.
Using data from U.S. Census Bureau, this research brief from the San Francisco Fed analyzes the changing geography of poverty in the Bay Area. It focuses on the nine-county San Francisco Bay Area and explores the demographic changes that took place between 2000 and 2009.
This Dallas Fed article highlights an innovative housing program addressing the needs of homeless veterans in the northern Louisiana portion of the the 11th District. Volunteers of America of North Louisiana provides transitional housing and supportive services including comprehensive health care, vocational rehabilitation and financial education.
This Dallas Fed article highlights United Way THRIVE, an innovative community financial stability collaborative of 21 service providers, launched and led by United Way of Greater Houston. In 2013, the effort guided 52,000 Houston-area families in reaching three financial stability objectives: increasing income, building savings,and acquiring assets.
The Dallas Fed highlights the importance of filing for the Earned Income Tax Credit (EITC), avoiding alternative refund settlement products and Volunteer Income Tax Assistance (VITA) programs in maximizing tax savings for low- and moderate-income families.
This report published by the San Francisco Fed provides research findings from two different phases of “MY Path,” a financial capability initiative that provides employed disadvantaged youth with peer-led financial education trainings, a savings account at a mainstream financial institution and incentives to set and meet savings goals.
From Cashing Checks to Building Assets: A Case Study of the Check Cashing/Credit Union Hybrid Service Model
This case study from the San Francisco Fed examines the pilot effort of Community Trust Prospera (CT Prospera), a division of Self-Help Federal Credit Union, to combine the accessible services of a check-casher with the longer-term depository and lending relationship opportunities of a mainstream financial institution. It is intended to capture lessons learned thus far and provide an informational resource for any organizations that are interested in learning from the model.
This issue of the San Francisco Fed's CDIR is dedicated to a simple idea: innovative ideas to solve poverty should not stop at the national border. There are too many good ideas abroad that can help inform our practices domestically, and good ideas here that can be relevant to other countries.
The Boston Fed conducts a semi-annual survey of service providers' perceptions of the economic and financial conditions of lower-income communities and individuals in New England and the organizations that serve them. Read about the results of their October 2013 survey in this report.
The Spring 2014 issue highlights the State Small Business Credit Initiative that is helping fund small businesses across the Tenth District by leveraging private lending. The issue also spotlights an Albuquerque collaboration assisting underserved families and children, and the use of crowd funding as a tool for social entrepreneurship. In addition, the issue features a Q&A with Mark Pinsky, president and CEO of Opportunity Finance Network, on the challenges facing CDFIs in the wake of the Great Recession.
The Boston Fed has created a powerful, time-saving, easy-to-use tool for people interested in the New England region. The tool uses census data to compare the demographic characteristics of lower-income and higher-income areas within a city. It also provides aggregate information for New England states and for the region as a whole
In disadvantaged neighborhoods, the condition of the housing stock can vary from block to block. On one block, homes appear well kept and in good condition, while on another, many homes show signs of physical distress. Since the blocks within the same neighborhood are often similar in terms of home values, what accounts for this pattern? And is there any contagion effect of home maintenance? Researchers at the Boston Fed examine this issue in several Boston neighborhoods in this report.
This paper from the Kansas City Fed provides a detailed overview of the U.S. student loan market, presents new statistics that highlight student loan debt burdens and delinquency rates, and discusses current concerns among many Americans about student loans, including their fiscal impact.
The Kansas City Fed provides fact sheets for employees to understand and make the most of their paychecks. The additional resources for employers can be used to reinforce the information provided in the fact sheets.
A study of the underbanked and unbanked in the Tenth Federal Reserve District looks at households who rely on non-banks to meet all or some of their basic financial needs.
The summer 2013 issue of 5E Navigator examines student loans and directs readers to information and tools for managing student loan repayment.
The March 2014 issue of the 5th District Footprint looks at earned income tax credit (EITC) usage and its potential economic benefits within Fifth Federal Reserve District zip codes.
This article provides a recap of the Asset Development Summit for Persons with Disabilities Summit, which brought together Chicago-area disability and asset building partners to discuss how to work together to expand economic empowerment opportunities for persons with disabilities. The February 2013 summit was hosted by the Chicago Fed’s Community Development and Policy Studies (CDPS) Division.
Suburban communities in the Minneapolis-St. Paul region now have nearly as many impoverished residents as the central cities, and local assistance organizations are modifying their approaches in response to the change. From the January 2013 issue of Community Dividend, a publication of the Minneapolis Fed.
This Atlanta Fed case study highlights the innovative work done by the United Way Center for Financial Stability to leverage partnerships that provide low- and moderate-income individuals in South Florida with personalized financial coaching, credit counseling, tax preparation and other services.
Bridges is a quarterly review of regional community and economic development issues, projects and regulatory changes for practitioners from community-based organizations, as well as for CRA officers, academics and government officials. Feature articles in the Fall 2013 issue include: Increasing Density: A Small-Town Approach to New Urbanism; Women Helping Women: Healing Hearts Bank at Redevelopment Opportunities for Women; The Graying of America: Preparing for What Comes Next and more.
This Infographic from the Richmond Fed presents key facts about homelessness in the U.S. and within the Fifth Federal Reserve District.
This analysis of consumer credit bureau data by the Philadelphia Fed finds that between 2002 and 2010, the number and proportion of consumers with a credit report fell in low- and moderate-income neighborhoods and rose in higher-income neighborhoods, largely as a result of residential migration. The paper also finds slower growth in the credit bureau sample in low- and moderate-income neighborhoods during periods of credit contraction.
The Federal Reserve Bank of Philadelphia’s Community Outlook Survey monitors the economic factors affecting low- and moderate-income (LMI) households in the Third Federal Reserve District. A report summarizing the most recent survey as well as an archive of prior surveys are available on our website.
In this inaugural issue of the 5th District Spotlight, produced by the Richmond Fed, key facts about the unbanked populations in the U.S. and within the Fifth Federal Reserve District are presented in an Infographic format.
The June 2013 issue of 5th District Footprint reveals that West Virginia has the highest and District of Columbia has the lowest student loan deliquency rates in the Fifth District. Student loan delinquency rates were above the national average in more than half of the Fifth District counties.
As an alternative to going to a bank or an automatic teller machine (ATM), some consumers receive cash back from purchases made with their debit card or electronic benefit transfer (EBT) card at retail stores.This April 2013 issue of 5th District Footprint explores patterns in cash back transactions in the Fifth District using data from a national retailer selling mainly food and household items.
This research brief from the San Francisco Fed examines household net worth and asset ownership in 2005 and 2011 across different demographic groups and provides an overview of some of the issues around household financial stability, why balance sheets mattered so much going into the recession, and how they are impacting the subsequent recovery.
The Spring 2013 issue highlights research on the impact of the Great Recession on low- and moderate-income communities. Also included are FAQs about the Fed's role in community and economic development, an interview with NeighborWorks America's Midwest director, CRA 101 tips for nonprofit organizations to work more effectively with financial institutions, and an overview of workforce development initiatives.
A resource from the Dallas Fed for consumers, community leaders, teachers and students available in print, online interactive and mobile app as well as lesson plans and interactive whiteboard apps for teachers. Building Wealth covers the basics of setting financial goals, budgeting to save, saving to invest, building credit, controlling debt and protecting the wealth you accumulate.